In today’s session of the Commons Energy Security and Net Zero Committee, Conservative MP for Chelmsford, Vicky Ford, posed a blunt question to Chris O’Shea, the Chief Executive Officer of Centrica, the parent company of British Gas: “How do you sleep at night?”
The heated exchange followed a discussion on the preparedness for the upcoming winter energy bills crisis.
MP Vicky Ford began by highlighting the distressing statistics from a previous panel, which included 4,700 deaths and dire consequences such as “dangerous coping mechanisms”, neglecting basic needs like “washing children’s clothes”, and even risking lives due to the struggle to afford energy bills.
Ms Ford turned her attention to Centrica’s financial performance, expressing disbelief at their profits, which had seen a nine-fold increase.
Ford directed a direct question to Chris O’Shea, asking him how he could reconcile these soaring profits with the ongoing crisis.
In response, O’Shea defended Centrica‘s position.
Mr O’Shea explained that the majority of the profit increase in British Gas was attributed to the recovery of past costs and refuted claims of double-claiming expenses.
The boss of Centrica stressed that these costs were incurred after the invasion of Ukraine, leading to substantial expenses that were passed on to consumers.
O’Shea noted the limitations imposed by the energy price cap and the inability of Ofgem to adjust it to match cost recovery accurately.
The MP interrupted, emphasising the human cost of the crisis and the severe consequences it had on people’s lives.
Ms Ford expressed concern that the situation might worsen in the coming winter – Vicky Ford questioned whether Centrica believed it was justified to retain record profits given the gravity of the crisis.
O Shea replied: “We’ve committed to putting in 10% of British Gas Energy’s profits voluntarily over and above what’s required under licence conditions to help customers.
“What we’re missing is the energy prices more than doubled from the long run average prior to the invasion of Ukraine. They’re now back down to the level before the invasion of Ukraine, but they are twice the long run average, so energy is far less affordable for other people.
“There are a number, a substantial number of people in the UK that cannot afford to live with dignity. Whether it’s rent, whether it’s mortgage, whether it’s food, whether it’s energy.
“Energy companies are permitted to make a 2% margin. That’s half the margin that, supermarkets make. That’s a lot less than other regulated businesses. We are part of a bigger issue.”
